SODEXO ● On the basis of various fundamental qualitative criteria, the company appears to be particularly poorly ranked from a medium and long-term investment perspective.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.85 for the 2021 fiscal year.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company does not generate enough profits, which is an alarming weak point.
● With an expected P/E ratio at 101.65 and 21.49 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company appears highly valued given the size of its balance sheet.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
